Celsius Network’s Bankruptcy Proceedings Lead to Partnership with Hut 8
As part of the bankruptcy proceedings of the Celsius Network, Hut 8, a leading North American digital asset mining and computing infrastructure provider, has been chosen to accommodate 66,000 miners. The mining operation will be powered by over 215 MW of energy upon completion. Hut 8 President Asher Genoot expressed confidence in their selection, highlighting their expertise in managing 680 MW through their managed services business.
Building Goodwill and Resilience
Hut 8 aims to establish mining infrastructure quickly and optimize operations for the Cedarvale mining project. The primary objective is to build goodwill with Celsius creditors while strengthening their managed services business, which is projected to oversee more than 895 MW after the site launch.
Transformation into a Creditor-Owned Mining Firm
After Celsius Network’s bankruptcy court approval for a transformation into a creditor-owned Bitcoin mining firm, Hut 8 has entered into an agreement with Celsius debtors. This development follows Celsius’s approval to transition into a post-bankruptcy mining venture managed by U.S. Bitcoin Corp (USBTC), which merged with Hut 8 in November 2023.
Hot Take: A New Chapter for Celsius Network and Hut 8
The partnership between Celsius Network and Hut 8 marks a significant turning point for both companies. While Celsius faces the challenges of bankruptcy, its collaboration with Hut 8 allows it to transform into a creditor-owned mining firm. For Hut 8, this partnership presents an opportunity to expand its mining operation and strengthen its managed services business. Together, they aim to repay customers and build resilience in the ever-evolving crypto industry.
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